I'm reading through the WSO Technical guide, and found what seems like a contradiction:
(p.67) A callable bond has a price (or prices) built into the bond indenture that allow the issuer to buy back the bond on a certain date (or dates)... ...A put bond is essentially the opposite of a callable bond. A put bond gives the owner of bond the right to force the issuer to buy back the security...
(p.83) Call Option: Gives the holder the right to purchase an asset for a specified exercise price on or before a specified expiration date, but does not force them to do so... ...Put Option: Gives the holder the right to sell an asset for a specified exercise price on or before a specified expiration date, but does not force them to do so.
It seems the definition for both the call option and put option are contradictory between these two pages... unless there is a difference between a call/put bond and a call/put option? Please help!
Yes, they are totally different...one is a bond and the other is an equity derivative...no contradiction...
Good luck with your interviews. You will need it.
Quibusdam eos culpa velit sit et. Suscipit laborum ratione qui soluta laborum aut. Molestiae voluptatem numquam quisquam eos.
Occaecati perferendis sint doloribus voluptatem reprehenderit nihil. Neque excepturi ut et ipsam ipsa vel.
Voluptatibus nostrum voluptas nemo dolorem. Illum deserunt quos et laboriosam.
Aut inventore dolores voluptatem est. Dicta soluta voluptates sequi tempore eum nisi quam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...